The members of Ukraine Government met with colleagues in El Salvador to devise a strategy to put Bitcoin’s adoption at the top of the Eastern European giant’s financial agenda. As more countries consider adopting Bitcoin as their currency standard, it is becoming a more global phenomenon.
Acceptance of bitcoin
Ukraine is on the verge of adopting Bitcoin as legal tender. Ukraine last week enacted a measure entitled “On Virtual Assets” that gives legal status to cryptocurrencies. For the first time in the country, the bill recognizes cryptocurrency as legal tender.
Virtual assets are defined and classified as both secured and unsecured intangible products. Other cryptocurrencies are not recognized as legal tender and may not be exchanged for other goods or services.
After the legislature has accepted changes to the country’s tax legislation on the taxation of cryptocurrency transactions, which it still has to vote on, the law is due to come into force.
The Ukrainian President previously signed a measure entitled “On Payment Services”, which will allow the central bank to issue the digital hryvnia, a central bank digital currency (CBDC). Professor Vyacheslav Evgenyev predicts that Ukraine will have made legal money from Bitcoin by early 2023 and that the country’s current currency, the hryvnia, will expire.
There are many similarities between Ukraine and El Salvador that lead him to believe that this will happen, the expert professor said. As in Central America, Ukraine also has a millennial president who was very open about Bitcoin.
With the passage of the Bitcoin Act that established Bitcoin as legal tender alongside the dollar in El Salvador, major market analysts and participants like Charles Hoskinson inadvertently set the tone for other countries to follow.
More and more governments are regulating cryptocurrencies. Cuba and Germany have made progress alongside Ukraine and El Salvador, and Panama is considering a bill to regulate cryptos, so it could be the next country to do so.